The International Monetary Fund (IMF) Managing Director Kristalina Georgieva says Pakistan is close to clinching a deal this week on the second tranche of $710 million under its $3 billion Stand Arrangement.
She said in an interview that Pakistan’s authorities are sticking to the program in a very difficult time and a deal is close.” I accept an agreement of the review to come within this week. Any day now,” she said.
Pakistani authorities and the Caretaker Finance Minister deserve credit for sticking to the program that they have in a very difficult time,” she said.
The IMF MD said low tax collection was a “parental issue” for Pakistan and said a tax-to-GDP ratio of 15 percent would help sustain the country.
Globally, Georgieva warned of economic hardship across the world, spurred by higher interest rates, a failure to fully recover from the pandemic, and conflicts in Europe and the Middle East. “The world is on edge,” she said. “If there is an impact on oil prices, what we did in fighting inflation is going to be partially lost and that can be a big problem.”
Pakistan remains engaged in talks with the IMF to address its pressing issue of a $6.5 billion external financing gap. The ongoing high-stakes meetings involve key stakeholders, including foreign ambassadors participating in the IMF mission visiting Pakistan.
There is a feeling that the $710 million second tranche of the $3 billion Standby Arrangement (SBA) will likely be disbursed in the first part of December with the approval of the IMF’s Executive Board.
